A Letter to
Our Shareholders

2020 was a year of significant change for Hubbell, change brought on externally from the COVID-19 pandemic and change driven from within that included our CEO succession, an operational reorganization, four acquisitions, and the continued execution on our strategies.

Throughout, we remained focused on safeguarding the health of our employees, partners and communities while continuing to deliver reliable and efficient critical infrastructure solutions to our customers.

Forecasts on how the COVID-19 pandemic will affect global markets in the long-term are difficult to make, but we are confident in our ability to outperform across macroeconomic environments due to our proven business model and solid financial position.

We achieved strong operational and financial performance in 2020, successfully navigating the global health crisis and its related impacts on our end markets. Our net sales were $4.2 billion. Despite challenging market conditions, we achieved adjusted operating margins⁽¹⁾ that were down only 10 basis points to the prior year. Our adjusted diluted earnings per share⁽¹⁾ was $7.58.

Our commitment to operational excellence resulted in strong free cash flow⁽¹⁾ of $560 million, an increase of 12% as compared with the prior year. This strong cash generation allowed us to continue pursuing our balanced capital allocation strategy in 2020, as we made 4 accretive acquisitions and raised our dividend for the 13th consecutive year.

We believe in measuring our progress not only in terms of our financial accomplishments, but also in running our business sustainably and in the best interests of all stakeholders. This philosophy is underscored by the four pillars which guide us as a company: Serve our Customers, Operate with Discipline, Grow the Enterprise and Develop our People.

We announced our new CEO effective October 1, 2020, and the planned May 2021 retirement of our former CEO and Executive Chairman, both the result of the Board of Directors’ long-term CEO succession planning process.

We also streamlined our organizational structure through the formation of our Utility Solutions and Electrical Solutions segments. This organizational structure united businesses with similar operating models, products and go to market strategies under unified operating segments, enabling Hubbell to drive productivity and long-term growth for our customers and shareholders.

The Utility Solutions segment is the unification of our former Power Systems business and Aclara. This integrated segment combines our leading positions across transmission & distribution components and smart infrastructure solutions to better serve our electric, water and gas utility customers.

The Electrical Solutions segment is the unification of our former Electrical segment from three business groups to a single operating segment. This streamlined operating structure will benefit our channel partners and customers through increased ease of doing business, as well as improved innovation and development of integrated solutions.

Hubbell is a global team of talented, purpose-driven professionals. Many are leaders in their communities - volunteering to make a positive social impact and building a more sustainable future.

In 2020 we developed programs and protocols to keep our employees safe as we navigated the COVID-19 pandemic while also providing them the support they needed during this stressful time. We instituted an emergency paid leave program and increased our mental health and wellness training and benefits programs for our employees.

As part of the Paradigm for Parity coalition, we remain committed to achieving gender parity in our senior leadership by 2030. And in 2020 we continued to drive inclusive efforts at Hubbell through ongoing training opportunities and support of diversity focused inclusion groups.

Hubbell’s commitment to incorporate social responsibility and sustainability initiatives has been a vital part of our business model for years.

At Hubbell, we provide mission-critical solutions that protect critical infrastructure, enable the transition to renewable energy, facilitate a more efficient and connected electrical grid, and increase the energy efficiency of industrial and commercial buildings and homes. With leading positions across the energy infrastructure, our products play a leading role in furthering clean energy trends such as grid modernization and electrification.

Our obligations to employees, customers, suppliers and the communities we serve goes well beyond providing products and solutions, however. We have the opportunity to improve people’s lives and the world around us, and with that ambition comes a responsibility to view our core mission through an environmental, social and governance (ESG) focused lens.

We believe a focus on ESG and sustainable business not only helps us identify and mitigate risk, but also aids us in uncovering opportunities to drive the superior performance that enables our many stakeholders to thrive. In 2020, we published specific ESG commitments relating to the reduction of greenhouse gas emissions and water usage over the next five years, as well as certain human capital management metrics about our employee base.

Hubbell was recognized by the Ethisphere Institute as one of the 2021 World’s Most Ethical Companies. This was the first time Hubbell has achieved this recognition and it reflects Hubbell employees’ commitment to compliance and doing the right thing.

We are confident that we have the right strategy to continue to create value for our shareholders, remain a valued partner for our customers and suppliers and contribute to the development and sustainability of our employees and communities.

Our commitment to serve our customers, operate with discipline, grow the enterprise and develop our people, combined with our attractive future growth opportunities and strong track record, position us for sustained success and exceptional shareholder value creation.

As we reflect on 2020, we wanted to acknowledge the strong support of our customers, suppliers, business partners, shareholders, Board of Directors and the communities in which we live and operate. But, most notably, we wanted to recognize the resilience, dedication and compassion of Hubbell’s employees around the world, who have helped us successfully navigate 2020 and ensure the continued long-term success of the Company.

Thank you for your continued support,

David G. Nord Executive Chairman

Gerben W. Bakker President and Chief Executive Officer